Choosing between renting and buying is a tough decision, made even more difficult by comparing rent rates, the housing market, lease lengths, neighborhoods, and property taxes, just to name a few. If you’ve been debating whether to rent or buy, you’ve definitely got a lot on your mind. To ease your woes, here are just a few of the pros and cons of renting an apartment vs. buying a home.
Pros and Cons of Renting an Apartment
Apartments offer lots of options to renters, with drawbacks and positive parts alike. If you are wondering if you should continue to rent apartments, start by evaluating these factors.
Pros:
- Renting apartments gives you the flexibility and convenience of moving when you want to. You can choose a full-length or short-term lease, live month-to-month, sublet, and renew or relocate as you choose.
- In an apartment, maintenance is usually taken care of for you. Repairs are made by a maintenance staff, so you don’t have to handle the cost or the hassle.
- Renting an apartment can put you closer to local resources. Apartments tend to be in denser neighborhoods, so you may have better access to more stores and services by foot.
Cons:
- Most apartments tend to be smaller than houses, so you may not have as much space as you’d like in your rental unit.
- Apartments often have restrictions on the amount of remodeling you are allowed to undertake, what kind of décor you can put up, and what pets you can have.
- As a renter, you don’t receive the tax deductions that come with home ownership (see below).
Pros and Cons of Buying a House
Buying a house is a big step, and with it comes lots of perks and problems. Looking at your budget and evaluating your needs can help determine whether or not you want to get a house or stick with renting apartments. Here are a few pros and cons to get you started.
Pros:
- You’ll probably have more space and more storage in a house than an apartment.
- Buying your own home means having the freedom to remodel and decorate however you want.
- In certain cases, there are tax deductions you can get for owning a home, like a mortgage interest deduction, a property tax deduction, and a PMI deduction.
Cons:
- The aforementioned tax deductions are only available depending on what tax bracket you fall into and whether you itemize your deductions or not.
- Buying a house is a long-term financial commitment. Insurance, PMI, and property taxes are just some of the big expenses that come with home ownership, so make sure you’re ready to shoulder them.
- Buying a house is also a long-term lifestyle commitment. If your job requires you to move around a lot, you want to travel more, or you anticipate needing to downsize in the near future, home ownership may not be for you.
